What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

published:28 Jan 2015

views:102525

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
iBooks (Apple) - https://itun.es/us/wYSveb.l
Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS
Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970
iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265
Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty
Last but not least, if you'd like to follow me on social media, use one of the links below:
https://www.facebook.com/oneminuteeconomics
https://twitter.com/andreipolgar
https://ro.linkedin.com/in/andrei-polgar-9a11a561

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

published:07 Nov 2011

views:115441

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it is often given to promote social, economic or economic policies. Most subsidies are given by the government to help the areas of weaker industry. If there is a lot of damage in the area, then the government tries to improve the area, help it financially. At the same time, if the cost of an item increases, then the government reduces the price of that item by subsidizing people.

✪✪✪✪✪ Download DENTCOIN mobile application - https://dent.app.link/DMolgDMqRT and get FREE 599 Dentcoins, most practical cryptocurrency on the market, which you can use to top up your mobile data plans in 40+ countries around the world.
Visit: https://dent.app.link/DMolgDMqRT and click on Dent App on the top to chose iPhone or Android version. ✪✪✪✪✪
What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.
Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market's demands. However, they can also be used as tools of political and corporate cronyism.
Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.

So, during times of inflation or deflation, why doesn't the government just set prices? It sounds reasonable, but price ceilings or floors just don't work. Adriene and Jacob explain why. Subsidies, however, are a little different, and sometimes they even work. We'll also explain that. Today you'll learn about stuff like price controls, deadweight loss, subsidies, and efficiency.
Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse
Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever:
Mark, EricKitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, MoritzSchmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, ElliotBeter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, CalebWeeks
--
Want to find Crash Course elsewhere on the internet?
Facebook - http://www.facebook.com/YouTubeCrashCourse
Twitter - http://www.twitter.com/TheCrashCourse
Tumblr - http://thecrashcourse.tumblr.com
Support Crash Course on Patreon: http://patreon.com/crashcourse
CC Kids: http://www.youtube.com/crashcoursekids

published:13 Jan 2016

views:380602

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

Subsidy

A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from Government, the term subsidy can relate to any type of support - for example from NGOs or implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, depreciation write-offs, rent rebates).

Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/Production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/Consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.

Crash Course

Plot

Crash Course centers on a group of high schoolers in a driver’s education class; many for the second or third time. The recently divorced teacher, super-passive Larry Pearl, is on thin ice with the football fanatic principal, Principal Paulson, who is being pressured by the district superintendent to raise driver’s education completion rates or lose his coveted football program. With this in mind, Principal Paulson and his assistant, with a secret desire for his job, Abner Frasier, hire an outside driver’s education instructor with a very tough reputation, Edna Savage, aka E.W. Savage, who quickly takes control of the class.

The plot focuses mostly on the students and their interactions with their teachers and each other. In the beginning, Rico is the loner with just a few friends, Chadley is the bookish nerd with few friends who longs to be cool and also longs to be a part of Vanessa’s life who is the young, friendly and attractive girl who had to fake her mother’s signature on her driver’s education permission slip. Kichi is the hip-hop Asian kid who often raps what he has to say and constantly flirts with Maria, the rich foreign girl who thinks that the right-of-way on the roadways always goes to (insert awesomely fake foreign Latino accent) “my father’s limo”. Finally you have stereotypical football meathead J.J., who needs to pass his English exam to keep his eligibility and constantly asks out and gets rejected by Alice, the tomboy whose father owns “Santini & Son” Concrete Company. Alice is portrayed as being the “son” her father wanted.

Crash Course (YouTube)

Crash Course (sometimes stylized as CrashCourse) is an educational YouTube channel started by the Green brothers, Hank Green and John Green, who are notable for their VlogBrothers channel. Originally, John and Hank presented humanities and science courses to viewers, respectively, although the series has since expanded to incorporate courses by additional hosts.

Crash Course was one of the 100 initial channels of YouTube's $100 million original channel initiative. Crash Course launched a preview on December 2, 2011. As of February 14, 2016, the Crash Course YouTube channel has gotten 3,947,842 subscribers and has received over 300 million video views. In November 2014, Hank Green announced that a partnership with PBS Digital Studios would allow them to produce more courses, starting in January 2015.

Currently there are fourteen seasons of Crash Course, with Hank and John each hosting five. Together with Emily Graslie, they co-hosted Big History. As part of the PBS partnership, Phil Plait and Craig Benzine have hosted series about Astronomy and U.S. Government and Politics, respectively. A second channel, Crash Course Kids, is hosted by Sabrina Cruz and has started its first series, Science.

Crash Course (game show)

Crash Course is an American game show that premiered on ABC on August 26, 2009. It is hosted by Orlando Jones and Dan Cortese. The series has teams of two competing for a golden steering
wheel and $50,000. The series was aimed to try and outbest Wipeout, but failed to beat its audience and has been canceled after three aired episodes (but four were produced).

Premise

Hosted by Orlando Jones and Dan Cortese. Five teams of two are revealed at the beginning (Siblings, Mother-Son, Best Friends, Single Moms, Roommates, Neighbors etc.). The first round has all five teams competing, for example, in car bowling, the team with the lowest amount of pins would be eliminated.

For round two, the four teams would tackle an even more difficult challenge, another example, in Catch Me If You Can, the teams would fight through barrels to get up on a platform. Some cars don't make it and fall upside-down sometimes. The team who doesn't make it up as far or with the slowest time is eliminated.

Market failure

In economics, market failure is a situation in which the allocation of goods and services is not efficient. That is, there exists another conceivable outcome where an individual may be made better-off without making someone else worse-off. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point of view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher Henry Sidgwick.

Subsidies

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

1:20

Subsidies Explained in One Minute

Subsidies Explained in One Minute

Subsidies Explained in One Minute

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
iBooks (Apple) - https://itun.es/us/wYSveb.l
Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS
Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970
iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265
Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty
Last but not least, if you'd like to follow me on social media, use one of the links below:
https://www.facebook.com/oneminuteeconomics
https://twitter.com/andreipolgar
https://ro.linkedin.com/in/andrei-polgar-9a11a561

The Effects of a Per Unit Subsidy

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

10:54

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it is often given to promote social, economic or economic policies. Most subsidies are given by the government to help the areas of weaker industry. If there is a lot of damage in the area, then the government tries to improve the area, help it financially. At the same time, if the cost of an item increases, then the government reduces the price of that item by subsidizing people.

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

✪✪✪✪✪ Download DENTCOIN mobile application - https://dent.app.link/DMolgDMqRT and get FREE 599 Dentcoins, most practical cryptocurrency on the market, which you can use to top up your mobile data plans in 40+ countries around the world.
Visit: https://dent.app.link/DMolgDMqRT and click on Dent App on the top to chose iPhone or Android version. ✪✪✪✪✪
What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.
Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market's demands. However, they can also be used as tools of political and corporate cronyism.
Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.

Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20

Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20

Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20

So, during times of inflation or deflation, why doesn't the government just set prices? It sounds reasonable, but price ceilings or floors just don't work. Adriene and Jacob explain why. Subsidies, however, are a little different, and sometimes they even work. We'll also explain that. Today you'll learn about stuff like price controls, deadweight loss, subsidies, and efficiency.
Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse
Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever:
Mark, EricKitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, MoritzSchmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, ElliotBeter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, CalebWeeks
--
Want to find Crash Course elsewhere on the internet?
Facebook - http://www.facebook.com/YouTubeCrashCourse
Twitter - http://www.twitter.com/TheCrashCourse
Tumblr - http://thecrashcourse.tumblr.com
Support Crash Course on Patreon: http://patreon.com/crashcourse
CC Kids: http://www.youtube.com/crashcoursekids

14:37

Welfare Analysis of a Subsidy

Welfare Analysis of a Subsidy

Welfare Analysis of a Subsidy

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

Subsidies

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

published: 28 Jan 2015

Subsidies Explained in One Minute

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their w...

The Effects of a Per Unit Subsidy

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more ...

published: 07 Nov 2011

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it...

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

✪✪✪✪✪ Download DENTCOIN mobile application - https://dent.app.link/DMolgDMqRT and get FREE 599 Dentcoins, most practical cryptocurrency on the market, which you can use to top up your mobile data plans in 40+ countries around the world.
Visit: https://dent.app.link/DMolgDMqRT and click on Dent App on the top to chose iPhone or Android version. ✪✪✪✪✪
What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Alth...

Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics #20

So, during times of inflation or deflation, why doesn't the government just set prices? It sounds reasonable, but price ceilings or floors just don't work. Adriene and Jacob explain why. Subsidies, however, are a little different, and sometimes they even work. We'll also explain that. Today you'll learn about stuff like price controls, deadweight loss, subsidies, and efficiency.
Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse
Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever:
Mark, EricKitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, MoritzSchmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, ElliotBeter, Jacob Ash, Christian, Jan Sc...

published: 13 Jan 2016

Welfare Analysis of a Subsidy

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

Subsidies

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer ...

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

Subsidies Explained in One Minute

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which usi...

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
iBooks (Apple) - https://itun.es/us/wYSveb.l
Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS
Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970
iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265
Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty
Last but not least, if you'd like to follow me on social media, use one of the links below:
https://www.facebook.com/oneminuteeconomics
https://twitter.com/andreipolgar
https://ro.linkedin.com/in/andrei-polgar-9a11a561

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
iBooks (Apple) - https://itun.es/us/wYSveb.l
Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS
Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970
iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265
Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty
Last but not least, if you'd like to follow me on social media, use one of the links below:
https://www.facebook.com/oneminuteeconomics
https://twitter.com/andreipolgar
https://ro.linkedin.com/in/andrei-polgar-9a11a561

The Effects of a Per Unit Subsidy

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to produ...

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind...

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it is often given to promote social, economic or economic policies. Most subsidies are given by the government to help the areas of weaker industry. If there is a lot of damage in the area, then the government tries to improve the area, help it financially. At the same time, if the cost of an item increases, then the government reduces the price of that item by subsidizing people.

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it is often given to promote social, economic or economic policies. Most subsidies are given by the government to help the areas of weaker industry. If there is a lot of damage in the area, then the government tries to improve the area, help it financially. At the same time, if the cost of an item increases, then the government reduces the price of that item by subsidizing people.

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

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What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.
Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market's demands. However, they can also be used as tools of political and corporate cronyism.
Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.

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What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.
Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market's demands. However, they can also be used as tools of political and corporate cronyism.
Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.

Welfare Analysis of a Subsidy

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more ...

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

Subsidies

What is a subsidy? A subsidy is really just a negative or reverse tax. Instead of collecting money in the form of a tax, the government gives money to consumer or producers. In this video, we look at the subsidy wedge and who benefits the most from different subsidies.
Microeconomics Course: http://bit.ly/20VablY
Ask a question about the video: http://bit.ly/1WJcibm
Next video: http://bit.ly/1Q0RBpE
Help us caption & translate this video!
http://amara.org/v/GCs5/

Subsidies Explained in One Minute

A one-minute video which explains what a subsidy is and refers to situations in which subsidies benefit society as a whole as well as to situations in which using them isn't exactly fair.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
https://www.patreon.com/oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
iBooks (Apple) - https://itun.es/us/wYSveb.l
Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS
Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970
iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265
Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty
Last but not least, if you'd like to follow me on social media, use one of the links below:
https://www.facebook.com/oneminuteeconomics
https://twitter.com/andreipolgar
https://ro.linkedin.com/in/andrei-polgar-9a11a561

The Effects of a Per Unit Subsidy

This video lesson illustrates and explains the effects that a per unit subsidy will have on the market for a commodity, in this case, corn. The payment to producers from government lowers the marginal cost of production, increases supply and leads to lower prices for consumers and greater revenues for producers. However, subsidies are not always economically efficient, since as we will see, the cost to taxpayers may outweigh the benefit to producers and consumers, meaning a subsidy may result in a net loss of societal welfare.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870

What is subsidy!सब्सिडी का अर्थ क्या है, कैसे और क्यों दी जाती है |

Often you have heard the word 'subsidy' many times and in many places. As soon as you hear the word of subsidy, there will be many questions raised in your mind, such as who is the subsidy? Who gives it? Who is given this, etc. You will find answers to these same questions in our video today. Today we will tell you what is the subsidy, how many types of it are, and what are some of the losses and benefits associated with it?
What is the meaning of subsidy?
The subsidy given by the government is called subsidy. Simply put, the benefit given to a person, business or institution by the government is called subsidy. Subsidy is usually given as a cash payment or tax deduction.
Why is the subsidy given?
The subsidy is given by the government for reducing the financial burden on people. And it is often given to promote social, economic or economic policies. Most subsidies are given by the government to help the areas of weaker industry. If there is a lot of damage in the area, then the government tries to improve the area, help it financially. At the same time, if the cost of an item increases, then the government reduces the price of that item by subsidizing people.

What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning, definition & explanation

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Visit: https://dent.app.link/DMolgDMqRT and click on Dent App on the top to chose iPhone or Android version. ✪✪✪✪✪
What is SUBSIDY? What does SUBSIDY mean? SUBSIDY meaning - SUBSIDY pronunciation - SUBSIDY definition - SUBSIDY explanation - How to pronounce SUBSIDY?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).
Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.
Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market's demands. However, they can also be used as tools of political and corporate cronyism.
Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good is the quantity supplied at a specified price. When the quantity demand exceeds the equilibrium quantity, price falls; conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving the subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right.
Assuming the market is in a perfectly competitive equilibrium, a subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure, or inefficiency.
Subsidies targeted at goods in one country, by lowering the price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (Infant-Industry), rather than to gain a comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries.

Welfare Analysis of a Subsidy

This video shows how a subsidy affects the amount of value that a market creates for society and calculates the deadweight loss created by a subsidy.
For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/
For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/
By Jodi Beggs - Economists Do It With Models
http://www.economistsdoitwithmodels.com
Facebook: http://www.facebook.com/economistsdoitwithmodels
Twitter: http://www.twitter.com/jodiecongirl
Tumblr: http://economistsdoitwithmodels.tumblr.com

Subsidy-- Effects on Market Equilibrium

Subsidy

A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from Government, the term subsidy can relate to any type of support - for example from NGOs or implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, depreciation write-offs, rent rebates).

Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/Production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production. Consumer/Consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.

There is no guarantee it will make similar allotments moving forward. The demise last week of Amazon’s “HQ2” project in Queens, N.Y., shows the waning support in many parts of the country for corporate projects that entail huge taxpayer-funded subsidies. In Connecticut, such subsidies face an uncertain future — with no indication from new Gov ... ....

Spaced

DeadWas I ever alive?Fucking makes you alive in one minuteSolcticeI am solctice filled with mercuryLiquid fuckedSee right through your heartFuck your heartI am mercury liquid pureHot, alive, dead, mucked fish eyes, doe eysI was born aliveI'll fucking kill youI'll beat your soft baby head with my own handCareful with that baby...Don't ever say the h word around himAshamedI am ashamed of my nameSay itI hate the sound of your shit because it means no goodIt means cheap, liar, smartass piece of shitChange it to raygun you fuckBilly is the loonI am the loonI am marsBilly addly addly addly...Your name causes shitWhile I may be no expert on this reality,There is no god, but shamegod is hurt, god is coldTry that once, god is deadThere is not another oneBattleCold heart radioFeedbackThe painRecurring messages of badnessRecurring living bad dreams at the vortex of lost soulsWailing lost souls of shameWe are in one holeLike a cup of mercury phosphateBrrrShuddering aroundTaste my shit you wenchLifting, wailing lost souls who stand a chanceHot, my eyes darkly gaze and wonderDo not enterWhy?I was born wholeFractured, divided, shattered into a billion fragmentsA million piece puzzle

There is no guarantee it will make similar allotments moving forward. The demise last week of Amazon’s “HQ2” project in Queens, N.Y., shows the waning support in many parts of the country for corporate projects that entail huge taxpayer-funded subsidies. In Connecticut, such subsidies face an uncertain future — with no indication from new Gov ... ....

From the article..Instead, on Thursday the company announced that it was canceling its headquarters plan for the site, selected after a lengthy and extremely public search ... To read more. ... Bezos is ferociously anti-union ... ....

Brexit could combat the obesity crisis - by helping us slash our consumption of sugar, according to a new report. Experts say people in Britain need to reduce their intake by at least two-thirds - and new laws are the key ... ....

The promised plan to provide housing subsidies worth 600 million euros per year for households in distress has turned into a rental subsidy of just over 300 million, with the big losers being the owners who are striving to make ends meet so as to pay their mortgage ... Crucially, the subsidy will only be paid out for a total of 12 months....

0 Comments PresidentHiggins questions environmental benefits of agricultural subsidies... President Michael D Higgins has questioned whether agricultural subsidies have done enough to capture the goodwill of farmers to farm in a manner that benefits the environment....

Noor AlamKhan, lawyer for the petitioner, said the government used to facilitate Hajis by offering them subsidy but the subsidy was withdrawn lately taking Haj expenses to round Rs456,426 per head, which were unaffordable for the people. He said a number of Pakistani wouldn’t able to perform Haj due to the withdrawal of subsidy....

The Supreme Court on Wednesday said stubble burning, the key reason for the rising air pollution in Delhi and NCR, was not going to stop merely by issuing directions and asked Punjab and Haryana governments to consider granting some kind of subsidy to the farmers....

The failure of Amazon to land a new campus in New York is more than just a reaction to a growing anti-corporate sentiment around the nation. It is more than just a bunch of angry activists successfully putting pressure on their local government to prevent the world’s retail giant from opening shop in their community. In this Feb ... (Photo11 ... Twitter ... .......

- Subsidies to Alberta's oil and gas industry are rapidly rising, despite Canada's commitment to eliminate inefficient fossil fuel subsidies by 2025 ... The report finds that over the last three fiscal years, the Alberta government has subsidized the fossil fuel industry by $1.6 billion each year, with over $2 billion in subsidies alone in 2017/18....

The NewYork politicians who scuttled the Amazon deal claim they oppose corporate subsidies in principle ...Hypocrisy much? Gianaris and Van Bramer both support subsidies for their preferred industry — namely, film and television producers ... This vocal critic of taxpayer subsidies to ......